The online marketplace for used cars named Carro bagged $360 million in the Softbank Vision Fund II. The company plans to utilize the funds to expand its business operations in Thailand and Indonesia and later prepare for an IPO. In an interview, the CEO Aaron expressed that the company will plan an IPO in 18 to 24 months. The new financial inclusion took the valuation of the company to more than $1 billion.
The company is one of the biggest online marketplaces that offer the customers convenience of choosing the best model car from home. The company provides buying, selling, leasing of vehicles. Additionally, it benefits the customers with insurance and financing facilities to the used cars.
The company has transacted more than 9800 deals, transacted $ 350 million worth of cars since inception. The young entrepreneur started the only tech-driven car marketplace in Southeast Asia and revolutionized the used cars’ ecosystem in 5 years. The company was the first subscription-based model in car deals in Singapore.
Similar startups gained momentum as the used cars market boomed in Southeast Asia. One of the stiff competitors is Carousell, an online marketplace for used cars that reached $850 million valuation and plans to expand its business operation as the consumer market is expected to soar to 334 million by 2030.
The online platform is the first in Southeast Asia that offered a contactless car purchasing service.
Many Indian startups gained acceleration with the Softbank investments that led to over $4 billion in funds. The firm is planning to invest in Dubai “cloud kitchen” Kitopi’s for nearly 400 million.
Southeast Asia used cars market is anticipated to grow at a CAGR of about 6.7% in the forecast period (2020 – 2025). The customers are refusing to invest in new cars as there are many options and flexibilities in the used cars marketplace. The wider availability and affordability make the used cars a better alternative. The key factor contributing to the increase in used car sales is the improved digital infrastructure. The fast-paced and secure digital service appeals to the customers with its accessibility. A report suggests that UAE is the largest importer of used cars, followed by Nigeria. However, the former is a wealthy nation, and factors like income and trends affect the buying behaviour.